Key Success Factors for a quality driven organisation. Geke Naaktgeboren, QA Director FrieslandCampina Ingredients

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1 Key Success Factors for a quality driven organisation Geke Naaktgeboren, QA Director FrieslandCampina Ingredients

2 The challenges & solutions to bring quality close to the heart Introduction FrieslandCampina FrieslandCampina Quality Vision & System FrieslandCampina Ingredients Supply Chain & Quality Assurance Context and Complexity Tools to bring quality in the heart of the organisation 1 5

3 Every day we nourish millions of consumers around the world 2

4 19,000 ambitious member farmers are the owners of FrieslandCampina Well cared-for cows and the skill and professionalism of its member dairy farmers are the basis for good quality milk. 3

5 FrieslandCampina at a glance 11.0 billion euros revenue 21,927 employees Facilities in 33 countries Export to over 100 countries 18,906 Member dairy farmers own the Company Every day millions of consumers Figures

6 Worldwide Europe Africa and the Middle East Asia and Oceania North and South America 6,046 revenue * 1,053 revenue * 3,523 revenue * 379 revenue * 12,922 employees 1,050 employees 7,786 employees 169 employees 66 facilities 6 facilities 36 facilities 6 facilities Netherlands, Germany, Belgium, Greece, Hungary, Romania, Russia, France, Spain, Italy, Austria, United Kingdom Nigeria, Ghana, Ivory Coast, United Arab Emirates, Saudi Arabia, Egypt Indonesia, Malaysia, Singapore, Thailand, Myanmar, Vietnam, Philippines, China, Hong Kong, Pakistan, India, Japan, New Zealand United States of America, Brazil Figures 2016 * in millions of euros 5

7 FrieslandCampina Brands Top 10 consumer brands in revenue in euros 1. Friso 2. Frisian Flag 3. Dutch Lady 4. Peak 5. Alaska 6. Campina 7. Rainbow 8. Foremost 9. Debic 10. Frico Top 5 industrial products in revenue in euros 1. DMV Excellion (caseïnaat) 2. Kievit Vana Blanca (creamers) 3. Domo Vivinal GOS (galacto-oligosacharide) 4. DFE Pharmatose (farmalactose) 5. Kievit Vana Grasa (vetpoeders) Consumer Food service Ingredients 6

8 Quality mission Our ambition on Food Safety & Quality FrieslandCampina is committed to create value for consumers and customers by offering a wide range of high quality and safe dairy and fruit-based products. We develop, produce and sell our brands at different locations and in many different countries, and our customers rightfully expect all our products to offer the same high quality and safety. Quality & safety is a shared responsibility for us all. 7

9 Golden Quality Rules Give direction to our quality thinking Make sure that our consumers and customers are and remain highly satisfied about our products Happy consumers and customers Qualified and engaged people Robust processes Clean and organised workplace Sustainable change management and problem solving Credible data Professional partners and suppliers 8

10 Our Quality Management System is built upon the GQRs Foqus system Advanced Audit Standard based on PDCA 9

11 infant Milk Formula is strongly regulated What does this mean in practice? I want the best for my baby Breastfeeding is best Special products to address special needs of babies Highly regulated in many countries Detailed requirements & strict compliance Infant formula needs to: be available be affordable adhere to the highest quality and safety standards be as close to breast milk as possible Close collaboration between dairy companies, governments and universities Company culture is a critical enabler

12 Production facilities have many targets from many stakeholders Integrated approach High focus on 4 x zero 11

13 Management is role model at all times! 12

14 Leadership practices most effective during high impact moments The common tools as 5S and inspections/ hygiene rounds are effective but often led by QA In this set up the necessary behavior to meet our quality objectives is integrated in the daily job

15 Manufacturing Excellence Q improvement will lead to loss reduction "The way assets and resources are configured and optimized to create value and minimize losses" The behavior needed to sustain and continuously improve performance "Highly motivated, but no impact" "Missing steering wheel" "Good theory, lack of execution" Missing direction" "The formal structures, processes and systems through which resources are managed in support of the operating system "The way people think, feel and conduct themselves in the workplace, individually and collectively "Transformation happening" Assure dialogue with customers to agree priorities and standards

16 Bring quality close to the heart of every employee and create feeling of togetherness Newsletters Events Quality awards Personal stories 15

17 Conclusions Key Success Factors for a quality driven organisation A clear overall & understood Quality Vision that is visualised and tangible Integrated into overall Business & Supply Chain plan to allow joint objectives and measurable KPI s With visible commitment by role modelling & leadership from management in daily work In a rewarding environment with care for employees and incentives for results

18 Thank You 29

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